Wednesday, March 19, 2008

3Com Seeks Break-up Fee from Bain Capital

3Com will pursue a $66 million merger termination fee from Bain Capital Partners. In a press release, 3Com said it does not believe that Bain Capital Partners' attempt to terminate its merger agreement with 3Com is valid. Subsequently, 3Com's shareholders on Friday voted to approve the take-over from Bain, even though the deal was already off the table. This move is expected to help 3Com in its bid to secure the $66 million break-up fee.

In February, 3Com, along with affiliates of Bain Capital Partners and Huawei Technologies, withdrew their joint filing to the Committee on Foreign Investment in the United States (CFIUS) concerning the parties' proposed merger transaction. The parties said they remain committed to continuing discussions.http://www.3com.com